In the age where everything can be found at a click of the finger, card payments become more than just a nice-to-have option. And this tendency is unlikely to be left behind.
Fifty years on from the first ATM launch, the payment ecosystem is barely recognizable. Card payments define a new type of shopping experience, spelling a new commerce era. With coins still jangling happily in their pockets, consumers prefer credit cards over cash.
Any guesses why?
Card payments vs. cash: future of payments 2020
With a steady climb of alternative payment solutions, consumers want to use whatever payment vehicle they choose.
Though cash still has a role to play, customers have come to expect a multitude of payment methods. They have a wealth of choice, from payment apps to digital wallets, cash vouchers, and cryptocurrencies. The list is endless. But still – card payments are leading the way – so let’s figure out why.
It’s unbelievable, but nearly three million of the UK small businesses don’t accept card payments. This is despite the UK having around 3.4 million card-only shoppers, as UK Finance puts it.
Turns out, while small business owners slow things down, their e-commerce competitors don’t feel the brunt. They offer a full pack of shopping-on-the-sofa benefits – what’s the best way to keep customers returning. It leaves a vacuum for small businesses to fill.
Adapt card payments – or be left behind
According to a trusted source, a third of people in the UK visit a cash machine once a month or less often. What’s the reason? They prefer using a ‘tap-and-go’ method.
In a competitive market, it’s essential to thrive in the changing landscape. This rings especially true for small business owners. What could be more unsettling than having to turn your clients away and see them visit another card-friendly store? Equally, it is also confusing for a client, who has to change plans completely just because he’s cash-free.
As RFi Group research states, the benefits of accepting card payments are clear. Small business owners should either convert to card payments or miss out their customers. Global e-commerce businesses are forging the path to cash-free society, and there’s nothing we can do but adapt.
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Card payments tie security & convenience together
RFi Group defines three main reasons for accepting these payments. So let’s dig in deeper and discuss each and every one in more detail.
1. Convenience.
This payment method is much more flexible for day-to-day spending. Businesses track cashless payments more easily. Stats on fluctuations in consumer spending shows how the time of the day / the season may impact consumer buying habits.
By the way, businesses can even gain more profit, adopting card over cash. According to research conducted by Dun & Bradstreet, 12-18% of people spend more paying by credit cards. Just because cash always puts a cap on how much you can lay out.
2. Fear of missing out.
According to an RFi Group study, this is the second common reason for using cashless payments. Visa’s research indicates that an approximate nine in ten people leave a business or a shop due to extensive queuing.
While card payments are faster than traditional payment methods, they significantly reduce queuing.
And let’s not forget about millennials. For them, card payments are already today’s world, not tomorrow’s.
According to a trusted source, three-quarters of those aged between 18 and 34 already prefer online shopping to an in-store alternative. With this in mind, businesses should provide millennials with what they want – a multitude of one-click, cash-free payment options.
3. Security.
Using card payments, businesses don’t hold as much cash as usual. This way, they automatically reduce risks of physical theft.
These payments are equally good for consumers. Since transaction data is encrypted, thieves cannot access it and steal customers money. Just make sure you use a trusted payment processing system and clear all the doubts. Ensuring consumer security is key to winning loyalty and trust.
Over to you
Adopting this payment method is an opportunity rather than a threat. Since the future is digital – new payment methods are not far off. Keeping up with innovative solutions is tough. But if you do make a transition to cash-free payments today – you ensure clients are happy to return tomorrow.
